This Just Might be The Most Important Week This Year
Markets, equity markets in particular, are at an incredibly vulnerable place, today and all this week. What happens, which we’ll find out on or before Friday’s close, could make or break the market.
Today, the CEOs of Apple, Amazon, Facebook, and Google are in the line of fire, as they virtually face the House Judiciary Antitrust Subcommittee.
We may very well see into the future as far as what politicians are going after, how they’re going to use those companies, what they’re going to attack them for, not just to look like they’re tough and public-minded today, but from today all the way up to November.
Typically, on the heels of a political circus there’s no follow up, nothing really happens, because it’s just a show. But this time might be different. This time, because this upcoming election is so important, politicians might actually do something – they, might actually go after these companies to prove to voters they are doing something.
And investors could react by taking more profits off the table.
Tech stocks have been fluttering lately, meaning they’re vulnerable to profit-taking and maybe some hard selling. They’ve held up over the past two weeks, but just barely.
Today’s Subcommittee hearing could tip the scales.
And while the hearing today may not be impactful, and there may not be any follow up. The long-term impact this week has on these companies remains to be seen, but what will be very impactful this week are Facebook’s earnings on Wednesday and Apple, Amazon, and Google’s earnings on Thursday.
It’s all about those tech stocks this week, one way or another.
Here’s why this week is so critical: If they these companies hold up this week, the market will hold up. If the leadership tech stocks have a bad week, the market could start to roll over.
That’s why this week is so important.
If I was a betting man, and I am, I’d bet on the tech stocks holding up and the market grinding higher.
Of course, anything can happen, and I still have some doubts.
So, be careful out there. We’ll revisit this topic this week as things progress.